Hindalco Industries is close to signing an agreement to borrow Rs. 7,875 crore ($1.76 billion) in loans. The interest rate for the loans, which will finance Hindalco's Mahan Aluminium smelter project under construction in the central Indian state of Madhya Pradesh, will be 10.3% in the first year.
The interest rate from the second year will be 1.8% over SBI’s base lending rate. The loans will have tenure of about 12.5 years. Royal Bank of Scotland, State Bank of India, Kotak Mahindra Bank and Citigroup arranged the loan. The syndication saw a demand of over Rs. 16,000 crore from 31 banks.crackcrack
